Aplu Shared Services Panel Studham

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Panel discussion at APLU regarding shared service model.

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Aplu Shared Services Panel Studham

  1. 1. experiences in building a shared service model<br />R. Scott Studham<br />APLU Panel Discussion on Shared Services<br />November 16 2009<br />
  2. 2. My background with shared services<br />CIO - Oak Ridge National Laboratory<br />$1.4B research organization <br />Consolidated 20 IT organizations to one via shared service model<br />Funded massive computer security effort and application modernization while decreasing overall IT costs because the customers decided what services were their priority <br />CIO - University of Tennessee<br />$1.7B higher education institution<br />Nine months into building shared service structure<br />
  3. 3. “Most IT organizations are not qualified to make hamburgers.”<br />- UT executive during my job interview<br />My first job – Burger King.<br />Factoria Mall in Bellevue WA<br />How many customers feel about IT organizations <br />
  4. 4. Roadblocks to IT Shared Services<br />Historically enterprise IT services did what they wanted and not what the customer wanted (distrust of IT)<br />Everybody can do it better (entrepreneurial) <br />False dichotomy of centralized vs. decentralized IT<br />Budgeting processes based on organizational structure rather than services<br />IT department that focuses on technology rather than services<br />IT leadership that wants to control IT rather than giving customers control. <br />
  5. 5. Steps to implement IT Shared Services<br />Financial Services need to be in Shared Service model before IT<br />Centralize as much of IT as necessary, but no more.<br />Inside the IT organization; Establish IT Service Level Managers (SLM) that are independent from IT Technical Line Organizations. Give the SLM’s control over projects & budgets.<br />Document IT Services and their costs. Determine the customer. <br />Move IT budgeting process to “Service Based Budgeting”. Most higher education use “organizational based budgeting”<br />Give “Customers” complete control over what services IT provides<br />After credibility of central services is established work with customers to reduce duplications. <br />
  6. 6. So where is University of Tennessee in this process?<br />Done before I got there<br /><ul><li>Financial Services need to be in Shared Service model</li></ul>Year 1<br /><ul><li>Centralize as many IT services as necessary, but no more.
  7. 7. Inside the IT organization; Establish IT Service Level Managers (SLM) that are independent from IT Technical Line Organizations. Give the SLM’s control over projects & budgets.
  8. 8. Document IT Services and their costs. Determine the customer. </li></ul>Year 2<br /><ul><li>Move IT budgeting process to “Service Based Budgeting”.
  9. 9. Give “Customers” complete control over what services IT provides</li></ul>Year 3<br /><ul><li>After credibility of central services is established work with customers to reduce duplications. </li></li></ul><li>Organization should reflect having customers establish IT’s direction<br />Input<br />Input<br />Input<br />CIO<br />CIO<br />Project<br />Project<br />Project<br />Customer<br />Service<br />Architecture Standards<br />Service Level Managers<br />Project<br />Customer<br />Historic<br />Line organization focused<br />Current<br />Customer focused<br />
  10. 10. Customer-driven governance based on service catalog<br /><ul><li>IT has established a list of central services
  11. 11. Working with each customer to establish their priorities </li></ul>Will result in a change in what we do and in some cases who pays for what service.<br />The next step will be to build customer IT plans<br />
  12. 12. Customers have noticed the change<br />Working with customers to document what they want us spending their money on has improved customer satisfaction<br />Shared<br />Services<br />

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